Most of the value in Ethereum blockchain is now being transferred using stablecoins rather than the blockchain’s native cryptocurrency, Ether. A fresh analysis by Messari indicate that stablecoins are now more popular on the Ethereum blockchain than Ether.
While Ethereum boasts of its native cryptocurrency, Ether, there are various tokens which have been developed on the network. Most of these tokens are stablecoins which can be said to be digital assets which are pegged to the rate of a different currencies such as the euro, GB pound as well as the US dollar or precious metals like gold.
Previously most of the value that was being passed on Ethereum has been through Ether. However, stablecoins have now overtaken Ether. This has been partly due to the popularity of Tether which is pegged on the US dollar.
Commenting on the current research, Ryan Watkins an analyst working with Messari, said in a tweet,
1/ Stablecoin transfer value has now flipped ETH on Ethereum 👀 pic.twitter.com/wwlNF2ObOV
— Ryan Watkins (@RyanWatkins_) January 29, 2020
Tether is also available on Bitcoin Omni layer, however, the firm is responsible for this started moving the Tether tokens to Ethereum last year in April. This led the volume of Tether within the Bitcoin platform to decline drastically. In the recent past, Tether was made available in Tron blockchain and today there is lots of USDT on the platform.
Last year in November, CoinMetrics, a data analysis firm, stated that the volume of Tether transfers within the Ethereum platform were almost three times higher than those of Ether transfers.
The high level of Tether activity within the Ethereum blockchain had began to clog the network. However, miners were able to adapt fast through adding the block sizes and now the network is stable and working seamlessly. However, if Tether activities continue rising, there are reasons for future concerns about the network, Decrypt reports.